Tips on Buying Insurance

Most times, we find ourselves in situations that we need financial assistance the most. This is mostly when a loss or an accident has occurred in our lives. The insurance companies should be the one to run to during such times, to help you restore your life. However, individuals need to make tough choices on which insurance products to buy within their budgetary limits, and thereafter get the best bargain for their money and avoid the drawbacks that arise when making an insurance claim.

Cynthia Kerubo Cynthia Kerubo
Jun 15, 2021 - 13:45
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Tips on Buying Insurance
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There are a number of tips that consumers need to know in order to make informed decisions when buying insurance products. These are;

Set your priorities right

Before buying an insurance you should begin by  listing the valuables you feel are at risk, in the order of their value. This is important because it will help you know which items are to be insured and which are not.  It also aids in knowing the cost of insuring suh items.

Look out for Miss-selling

Look at the protection products that you have. See whether you possess a policy with personal accident, or medical scheme or a life cover. You would not need to buy another if you already have the latter.

Compare the different Insurance Companies

The cost of the insurance should not be the only guiding factor. The financial stability as well as the soundness of the insurer should also be compared. Look at the benefits that each insurance company has and  make a correct decision.

The Use of Intermediaries

When you do not have experience or when your cover is complicated, prospecting for a suitable insurance cover can be challenging. Under such situations, you may need to seek for help from licensed insurance agents or even medical service providers.

Completing the Proposal form

Ensure you provide the correct information about the risks you would wish to insure. Withholding or providing incorrect information can be the beginning of problems with an insurance policy. Fill the form, read and understand it before signing. Completion of this form is the beginning of buying insurance.

Read and understand the policy before signing

When you are now issued with the policy, ensure that all the information contained in the policy was also in the proposal. Obtain sufficient facts about the policy. Cancelling the policy after signing before three years will make you lose all premiums so far paid. Pay policy premium on time to avoid your policy being terminated.

Keep all records pertaining to the policy

Ask for all the receipts when paying for your policy. Keep the policy documents and all correspondents safely. They may be of help in the near future.

Edited by Pendo Setim.